Should I invest my money or buy a life insurance policy instead? + MORE Feb 10th

Not sure how to make a retirement plan? Read on…
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 retirement planning

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Q. I’m a 23-year-old who just graduated with a Masters degree and I have $30,000 in student debt ($20,000 provincial, $10,000 federal). I also just got a job with an annual salary of roughly $60,000. My question is what is the best way to invest my money (index mutual fund, stocks, online Rob.... More »
Q: I’m 27 years old with a relatively healthy income of around $125,000. I’m aiming to get on the early retirement track with any luck and retire around the age of 45.
I’ve been aggressively in the investing game for a few years now and have been putting money into my RRSP, which now has a balance of around $46,000 (25% fixed income and 75% equity). I realize that putting the majority of my savings into an RRSP is a bit counterintuitive given my early retirement ambitions, however, and am starting to think about placing a larger portion of my savings into a TFSA so I can withdraw from it before age 65.
I’m at odds here, as I appreciate the reduction on my income tax from contributing to my RRSP. Any wisdom or considerations here would be greatly appreciated!
– Konstantino
A: The financial independence, retire early (FIRE) movement seems contrary to what many older Canadians think about millennials. The thing I like most about personal finance is the emphasis on “personal” – personal decisions, personal goals, and personal planning…

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Q: My wife and I are both 40 and have two kids—ages 5 and 7. We are considering buying a joint last-to-die life insurance policy that would cost a fixed $7,105 per year for ten years. That’s a total of $71,050 and the policy would pay $500,000 when the last of us dies. This is a proposition from our advisor after we have made our retirement plan. We have concluded that we have enough savings to retire at 55 with a very comfortable nest egg made up of TFSAs, RRSPs, and defined benefit pension plans, as well as money in non-registered investments.
We do not have any debts except a remaining mortgage of $95,734. We also have life insurance and disability insurance with our employer that would cover our needs if one of us were to die or could not work anymore. The goal of this joint last-to-die policy would be to transfer money tax- free in the future as all other needs are covered either by our savings or our employee benefits.
I am wondering if buying this policy is really a good move and if the cost of this product is reasonable? We can afford the cost without changing our lifestyle but our advisor is not independent so the policy would be sold by its institution and that’s what makes me wary…

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